3 (1 point)
Read the scenario. A local foods market recently accepted a cookie baker to sell cookies at their weekend market.
She set her cookie prices at $2 per cookie and $10 for a half dozen. She sold 6 dozen cookies her first weekend.
Two weeks later, a new baker set up shop, selling cookies, pastries, and pies. He set his cookie price at $1.75 per
cookie and $10 for a half dozen. He sold 4 dozen cookies his first weekend. The next weekend, the first cookie
baker changed her prices to $1.50 per cookie and $8 for a half dozen. She sold 8 dozen cookies that weekend. In
this scenario, competition among which group determined the price of the product?
The owners of the food market
The buyers
The sellers
The government
To determine which group influenced the price of the product in the given scenario, let's analyze the events described:
1. Initially, a cookie baker set her prices at [tex]$2 per cookie and $[/tex]10 for a half dozen and sold 6 dozen cookies. 2. Two weeks later, a new baker arrived and set his prices at [tex]$1.75 per cookie and $[/tex]10 for a half dozen, selling 4 dozen cookies. 3. Subsequently, the first baker responded by lowering her prices to [tex]$1.50 per cookie and $[/tex]8 for a half dozen and sold 8 dozen cookies.
From this: - The first and second bakers adjusted their prices, likely due to the presence of competition. - The price changes reflect a competitive environment where sellers are attempting to attract more customers by offering lower prices.
Key Insight: - The sellers (the bakers) specifically adjusted their prices in response to each other's pricing strategies. This indicates that their behavior influenced the price adjustments.
Conclusion: - The price of the cookies was determined by the competition among the sellers.
Thus, the group that determined the price of the product in this scenario was the sellers.
